Pension and SERP Plans
 6 Months Ended
Jun. 30, 2012
Pension and SERP Plans [Abstract]  
Pension and SERP Plans

Note 12 - Pension and SERP Plans

 

                The following table presents the components of the net periodic pension plan cost for First United Corporation's Defined Benefit Pension Plan and the Bank's Supplemental Executive Retirement Plan ("SERP") for the periods indicated:

 

         

Pension

For the six months ended

June 30,

2012                    2011

For the three months ended

June 30,  

2012                       2011

(In thousands)

 

Service cost

 $0

 $0

 $0

 $0

Interest cost

691

660

340

330

Expected return on assets

(1,107)

(1,120)

(554)

(560)

Amortization of transition asset

(20)

(20)

(10)

(10)

Recognized net actuarial loss

190

200

 90

  100

Amortization of prior service cost

6

4

3

2

Net pension credit included in employee benefits

$(240)

$(276)

$(131)

$(138)

 

         

SERP

For the six months ended

June 30,

For the three months ended

June 30,

(In thousands)

     2012

     2011

        2012

        2011

Service cost

 $60

 $80

 $30

 $40

Interest cost

126

 114

63

57

Amortization of recognized loss

6

0

3

0

Amortization of prior service cost

62

63

31

31

Net pension expense included in employee benefits

$254

$257

$127

$128

 

                Effective April 30, 2010, the Pension Plan was amended, resulting in a "soft freeze".  The effects of the amendment were to prohibit new entrants into the plan and to cease crediting additional years of service after that date.

 

The Corporation does not intend to contribute to the Pension Plan in 2012 based upon its fully funded status and an evaluation of the future benefits provided under the Pension Plan. The Corporation expects to fund the annual projected benefit payments for the SERP from operations.